ANALYSIS OF 3 KG LPG INVENTORY CONTROL USING THE ECONOMIC ORDER QUANTITY (EOQ) METHOD AT PT PUTRA JAYA NUSA PERKASA

Abstract

Inventory is one of the important aspects of the operations of a distribution company because it affects distribution continuity and cost efficiency. PT Putra Jaya Nusa Perkasa, as a 3 kg LPG distribution agent in Batam City, faces inventory control problems in the form of demand fluctuations, the risk of excess inventory, and high inventory costs due to the absence of an optimal inventory calculation method. The main objective of this study is to evaluate the extent to which the application of the Economic Order Quantity (EOQ) method by PT Putra Jaya Nusa Perkasa in controlling 3 kg LPG inventory has succeeded in reducing inventory costs. This study uses a descriptive quantitative approach with a case study method. Data were collected through record keeping, interviews, and field observations. The results show that the company’s current inventory management system does not use optimal inventory estimates, but is instead based on distribution provisions from Pertamina. The company’s actual total inventory costs in 2023 amounted to IDR 2,136,794,625, in 2024 to IDR 2,313,364,233, and in 2025 to IDR 1,173,579,450. After applying the EOQ method, the optimal order quantities were 520,528 cylinders in 2023, 551,987 cylinders in 2024, and 383,988 cylinders in 2025. The application of the EOQ method reduced total inventory costs to IDR 974,323,384 in 2023, IDR 1,036,180,553 in 2024, and IDR 695,141,515 in 2025.